UNITED STATES
SECURITITES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
Commission File Number 0-12635
SOUTH JERSEY BANCORP OF DELAWARE, INC.
(Exact name of Registrant as Specified in Charter)
Delaware 22-2983654
(State of Other Jurisdiction (I.R.S. Employer Identification
of Incorporation or Organization) Number>
53 South Laurel Street
Bridgeton, NJ 08302
(Address of Principal Executive Offices)
(609) 453-3134
(Registrant's Area Code and Telephone Number)
Registrant has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the period it has been subject
to such filing requirements.
[x] YES [ ] NO
Common Stock Outstanding as of September 30, 1995 1,087,658
<PAGE>
<TABLE>
PART I-Financial Information
This is the consolidated balance sheet for Southern Jersey Bancorp.
All dollar amounts are in thousands.
<CAPTION>
9/30/95 9/30/94 12/31/94
<S> <C> <C> <C>
ASSET
Cash and due from banks 14,904 16,034 17,982
interest bearing deposits 2,000 1,000 3,000
Investment securities held to maturity 101,450 120,864 117,728
Investment securities available for sale 24,436 19,423 20,416
Market Value
9-31-95 126,077
9-31-94 138,055
12-31-94 134,170
Loan net of unearned income 221,234 178,966 192,518
Less: Allowance for loan losses 2,383 2,175 2,146
Net Loans 218,851 176,791 190,372
Federal funds sold 9,400 24,100 11,250
Bank premises and equipment - net 6,055 5,142 5,308
Other assets 8,090 8,213 6,840
Total Assets 385,186 371,567 372,896
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES 9/30/95 9/30/94 12/31/94
<S> <C> <C> <C>
Deposits-interest bearing 278,393 258,455 249,040
Non-interest bearing deposits 67,782 78,333 88,183
------ ------ ------
Total Deposits 346,175 336,788 337,223
Other Liabilities 3,387 2,761 3,118
----- ----- -----
Total Liabilities 349,562 339,549 340,341
Shareholder's Equity
Common stock par value $1.67 per share
Authorized 5,000,000 shares;
Issued 1,275,000 shares 2,129 2,129 2,129
Surplus 2,258 2,260 2,258
Undivided profits 34,267 30,627 31,344
------ ------ ------
38,654 35,016 35,731
Less: Treasury stock at cost
187,342 Common Shares 9-30-95
178,875 Common Shares 9-30-94
175,767 Common Shares 12-31-94 3,649 3,308 3,232
----- ----- -----
35,005 31,708 32,499
Allowance for unrealized gain/losses
on Available for Sale Securities 619 310 56
Total Shareholders' Equity 35,624 32,018 32,555
------ ------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 385,186 371,567 372,896
</TABLE>
<PAGE>
<TABLE>
This is the consolidated statement of earnings sheet for
Southern Jersey Bancorp. All dollar amounts are in thousands except for per
share data
<CAPTION>
Nine Months Third Qtr.
Ended Ended
Sept. 30 Sept. 30
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest on securities:
Taxable interest income 4,484 4,858 1,580 1,562
Tax-exempt interest income 1,361 1,612 316 535
Interest and fees on loans 13,622 11,053 4,785 3,950
Interest on interest bearing deposits 140 38 38 21
Federal funds sold 543 647 369 196
Lease income 6 12 0 6
- - - -
Total interest income 20,156 18,220 7,088 6,270
INTEREST EXPENSE
Interest on deposits
Savings 4,252 3,932 1,524 1,461
Certificates of deposit $100,000
and over 1416 1,026 600 233
Fed Funds Purchased 31 0 0 0
Other time deposits 3,918 2,940 1,448 994
----- ----- -- ---
Total interest expense 9,617 7,898 3,572 2,688
NET INTEREST INCOME 10,539 10,322 3,561 3,582
Provision for loan losses 575 585 125 195
Net Interest Income After --- --- --- ---
Provision for Loan Losses 9,964 9,737 3,436 3,387
OTHER OPERATING INCOME
Service charges on deposit accounts 1,026 915 359 317
Trust Department Income 492 470 167 138
Commissions, collection
Charges and fees 271 219 83 78
Investment security gains (losses) 226 0 0 0
--- - --- -
Total Other Operating Income 2,015 1,604 609 533
OTHER OPERATING EXPENSES
Salaries and wages 3,198 2,943 986 919
Pension and other benefits 952 826 264 332
Occupancy and equipment 1,225 1,137 450 385
FDIC Assessments 411 602 (5) 201
Postage, stationery and supplies 285 261 92 94
Professional Fees 243 193 103 82
Other operating expenses 979 970 317 303
--- --- --- ---
Total Other Operating Expenses 7,293 6,932 2,207 2,316
Income Before Income Taxes 4,686 4,409 1,838 1,604
Applicable Income Taxes 1,212 1,176 462 446
----- ----- --- -----
NET INCOME 3,474 3,233 1,376 1,158
----- ----- ----- -----
Earnings per Common Share 3.16 2.95 1.26 1.05
</TABLE>
<PAGE>
<TABLE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands)
<CAPTION>
Nine Months Ended
Sept 30
1995 1994
---- ----
<S> <C> <C>
Cash flow from operating activities
Net Income 3,474 3,233
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of organization expenses 0 0
Depreciation of premises and equipment 266 274
Net Loan charge offs (338) (545)
Provision of loan losses 575 585
Premium Amortization net of discount accretion 190 21
Gain or (Loss) on sale of securities 226 0
Gain on other real estate 0 0
Gain on sale of bank premises and equipment 0 0
Increase in other assets (1266) 0
Increase/(decrease) in other liabilities 269 (1,592)
Increase/(decrease) in borrowed funds 0 396
--- ---
Net cash provided by operating activities 3,396 2,372
Cash flows from investing activities
Interest bearing deposits 1000 1,000
Purchase of investment securities (18,903) (15,114)
Proceeds from sales of investment securities 12,437 0
Proceeds from maturities of investment securities 18,333 24,966
Increase in loans (28,716) (27,624)
Bank premises and equipment (771) (398)
Proceeds from sale of bank premises and equipment 0 0
Proceeds from sale of other real estate 312 803
--- ---
Net cash used for investing activities (16,308) (16,367)
Cash flows from financing activities
(Decrease)/Increase in total deposits 8,952 9527
Cash dividends (551) (527)
Purchase of Treasury stock (573) (155)
Sale of Treasury stock 156 131
--- ---
Net Cash provided by financing activities 7,984 8,976
Net increase/(decrease) in cash and cash equivalents (4,928) (5,019)
Cash and equivalents at beginning of year 29,232 45,153
Cash and Cash equivalent at end of year 24,304 40,134
Supplementary Schedule of NonCash Investing
and Financing Activities 123 365
Loans, Net of Chargeoffs transferred to Other Real Estate Owned:
</TABLE>
<PAGE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
NOTES TO FINANCIAL STATEMENTS
Nine Months Ended September 30, 1995
1) Principles of Consolidation: The consolidated financial statements
reflect the account of Southern Jersey Bancorp of Delaware, Inc. and
its subsidiary, The Farmers and Merchants National Bank of Bridgeton,
after the elimination of all intercompany balances and transactions.
2) There have been no significant changes in the account policies of
the registrant since December 31, 1994, the date of the most recent
annual report to security holders, nor have there occurred events
which have had a material impact on the disclosures herein.
3) The interim financial statements contained herein reflect all
adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim periods presented.
4) In accordance with Rule 10-01(b)(8), the unaudited interim financial
statements filed under cover of Form 10-Q for September 30, 1995,
reflect adjustments that are of a normal recurring nature which are,
in the opinion of Management, necessary to a fair statement of the
results for the interim periods presented.
<PAGE>
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
SOUTHERN JERSEY BANCORP OF DELAWARE, INC.
(Registrant)
Paul Ritter
Treasurer
Clarence D. McCormick
Chairman/CEO
DATE: November 8, 1995
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF
RESULTS IN OPERATIONS
Nine Months Ended September 30, 1995
The net operating income of $3,474,000 for the first nine months
of 1995 is 7.45% above the same period in the prior year. Net
income after taxes for 1995 is projected to be approximately
$4,500,000 or approximately .51% more than 1994.
This is primarily due to the fact that during the half of 1995
an increase in operating expenses, primarily caused by additional
costs to administer the expanded branch facilities, resulted in
company realizing only a moderate increase in net income in the first
three quarters of 1995 as compared to 1994.
An unrealized gain of approximately $619,000 net of tax effects was
recognized on the value of securities available for sale pursuant to
FASB 115.
There has been no other significant changes in charge-offs, recoveries,
provision for loan and lease losses, non-accruing or non-performing loans
except for an increase of approximately $1,015,000 in installment loans
past due 30-89 days still accruing interst and anincrease of aproximately
$725,000 in past due real estate loans 90 days or more and still accruing
interest. Additionally, there were total charge-offs of $396,000 and
recoveries of $58,000 through the first nine months of 1995.
A gain of approximately $226,000 was realized on the sale of investment
securities classifed Available For Sale for the first nine months of 1995.
The decrease in the FDIC insurance premiums on deposits from has
resulted in a decrease in this expense item beginning in the third
quarter of 1995.
<PAGE>
PART II - OTHER INFORMATION
EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits
Exhibit 27. Financial Data Schedule
B. Reports on Form 8-K
No reports have been filed on form 8-K during this quarter.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 14,904
<INT-BEARING-DEPOSITS> 2,000
<FED-FUNDS-SOLD> 9,400
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 24,436
<INVESTMENTS-CARRYING> 101,450
<INVESTMENTS-MARKET> 126,077
<LOANS> 221,234
<ALLOWANCE> 2,383
<TOTAL-ASSETS> 385,186
<DEPOSITS> 346,175
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,387
<LONG-TERM> 0
<COMMON> 2,129
0
0
<OTHER-SE> 33,495
<TOTAL-LIABILITIES-AND-EQUITY> 385,186
<INTEREST-LOAN> 13,628
<INTEREST-INVEST> 5,845
<INTEREST-OTHER> 683
<INTEREST-TOTAL> 20,156
<INTEREST-DEPOSIT> 9,617
<INTEREST-EXPENSE> 9,617
<INTEREST-INCOME-NET> 10,539
<LOAN-LOSSES> 575
<SECURITIES-GAINS> 226
<EXPENSE-OTHER> 7,293
<INCOME-PRETAX> 4,686
<INCOME-PRE-EXTRAORDINARY> 4,686
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,474
<EPS-PRIMARY> 3.16
<EPS-DILUTED> 3.16
<YIELD-ACTUAL> 3.89
<LOANS-NON> 2,318
<LOANS-PAST> 2,879
<LOANS-TROUBLED> 1,144
<LOANS-PROBLEM> 1,032
<ALLOWANCE-OPEN> 2,146
<CHARGE-OFFS> 396
<RECOVERIES> 58
<ALLOWANCE-CLOSE> 2,383
<ALLOWANCE-DOMESTIC> 2,383
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
